Great American Bancorp : 2023 Q2 Earnings

NEWS RELEASE

FOR IMMEDIATE RELEASE

July 18, 2023

Contact: Mr. Patrick McWilliams

Chief Financial Officer and Investor Relations [phone]

Great American Bancorp, Inc. Announces Earnings for the

Six Months Ending June 30, 2023

Champaign, Illinois - Great American Bancorp, Inc. (OTC Pink®/GTPS), the holding company for First Federal Savings Bank of Champaign-Urbana, reported net income of $1.163 million for the six months ended June 30, 2023, which is an increase of $925 thousand, or 388.7% from $238 thousand reported for the six months ended June 30, 2022. Basic and fully diluted earnings per share were $2.92 for the six months ended June 30, 2023 compared to $0.58 for the same period in 2022. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.10% and 11.78% for the six months ended June 30, 2023, increasing from 0.21% ROA and 2.60% ROE for the same period in 2022.

Interest income from loans increased $328 thousand in 2023 compared to 2022 due to rising rates on adjustable-rate loans. The Prime Rate, which is the primary underlying rate for the Company's adjustable-rate loans, increased from 3.25% as of January 1, 2022 to 8.25% as of June 30, 2023. Interest income from deposits with financial institutions and other, which are mostly overnight deposits maintained at the Federal Reserve Bank and the Federal Home Loan Bank, increased $459 thousand in 2023 compared to 2022 due to the Federal Open Market Committee increasing the Federal funds target rate range from 0 to 1/4 percent as of January 1, 2022 to 5 to 5 ¼ as of June 30, 2023. Interest on securities increased $919 thousand in 2023 compared to 2022 due the Company increasing the investments in United State Treasuries held from an average balance for the six months ending June 30, 2022 $30.199 million to $82.178 million for the six months ending June 30, 2023.

Noninterest income decreased $153 thousand in 2023 compared to 2022, from $1.829 million for the six months ending June 30, 2022 to $1.676 million for the same period in 2023. The decrease in noninterest income is primarily due to the decrease in net gains on sales of loans. Net gain on sales of loans decreased $174 thousand for 2023 compared to 2022 due to the Company selling $3.620 million in loans during 2023 compared to $10.846 million in loans during 2022.

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Total noninterest expense increased $355 thousand, from $3.743 million for the six months ending June 30, 2022 to $4.098 million for the same period in 2023, primarily due to an increase in salaries and employee benefits.

Net income for the three months ended June 30, 2023 was $632 thousand, which is an increase of $472 thousand from $160 thousand reported for the same period in 2022. The return on average assets ("ROA") and the return on average equity ("ROE") were 1.21% and 12.59% for the three months ended June 30, 2023, increasing from 0.28% ROA and 3.48% ROE for the same period in 2022.

Total assets at June 30, 2023 were $202.309 million compared to $218.874 million at December 31, 2022, a decrease of $16.565 million. Total net loans, including loans held for sale, were $91.796 million at June 30, 2023, decreasing $351 thousand or 0.38% from total net loans of $92.147 million at December 31, 2022. Total deposits decreased $17.690 million, from $196.039 million at December 31, 2022 to $178.349 million at June 30, 2023.

First Federal Savings Bank of Champaign-Urbana is headquartered in Champaign, Illinois, and operates through its administrative/branch office in Champaign and through one additional full service branch located in Urbana, Illinois. The Bank also provides full service brokerage activities through a third-partybroker-dealer. The Bank's subsidiary, Park Avenue Service Corporation, sells insurance products through the GTPS Insurance Agency. The Bank's deposits are insured by the Federal Deposit Insurance Corporation.

This earnings report may contain certain forward-looking statements which are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition, changes in accounting principles, policies, or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting the Company's operations, pricing, products and services. Great American Bancorp, Inc. stock is traded on OTC Pink®, under the symbol, "GTPS."

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GTPS-pr-2023-04

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY Consolidated Balance Sheets

June 30, 2023 and December 31, 2022

(unaudited except amounts reported as of December 31, 2022; in thousands, except share data)

		2023		2022
Assets
Cash and due from banks	$	4,575	$	4,477
Interest-bearing demand deposits		28,851		25,960
Cash and cash equivalents		33,426		30,437
Securities available for sale		19		21
Securities held to maturity		69,845		89,094
Federal Home Loan Bank stock, at cost		258		258
Loans held for sale		-		-
Loans, net of allowance for loan losses of 2023 - $929; 2022 - $861		91,796		92,147
Premises and equipment, net		4,080		3,842
Goodwill		485		485
Other real estate owned		136		323
Other assets		2,264		2,267
Total assets	$	202,309	$	218,874
Liabilities and Stockholders' Equity
Liabilities
Deposits
Noninterest-bearing	$	50,018	$	50,742
Interest-bearing		128,331		145,297
Total deposits		178,349		196,039
Advances from borrowers for taxes and insurance		261		229
Other liabilities		3,255		3,038
Total liabilities		181,865		199,306
Stockholders' Equity
Preferred stock, $0.01 par value;
1,000,000 shares authorized; none issued		-		-
Common stock, $0.01 par value;
1,000,000 shares authorized and issued		10		10
Additional paid-in capital		3,310		3,310
Retained earnings		36,461		35,494
Accumulated other comprehensive loss		(199)		(199)
Common stock in treasury, at cost (2023 - 602,811 shares; 2022 -600,011 shares)		(19,138)		(19,047)
Total stockholders' equity		20,444		19,568
Total liabilities and stockholders' equity	$	202,309	$	218,874

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Six Months Ended June 30, 2023 and 2022

(unaudited, in thousands, except share data)

		2023		2022
Interest and Dividend Income
Loans	$	2,218	$	1,890
Securities		1,089		170
Dividends on Federal Home Loan Bank stock		4		3
Deposits with financial institutions and other		681		222
Total interest and dividend income		3,992		2,285
Interest Expense
Deposits		26		32
Other		2		2
Total interest expense		28		34
Net Interest Income		3,964		2,251
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		3,964		2,251
Noninterest Income
Insurance sales commissions		953		938
Customer service fees		231		237
Other service charges and fees		170		177
Net gain on sales of loans		100		274
Loan servicing fees, net of amortization of mortgage servicing rights		42		53
Net gain on sales of other real estate owned		52		33
Other		128		117
Total noninterest income		1,676		1,829
Noninterest Expense
Salaries and employee benefits		2,307		2,148
Occupancy expense		308		290
Equipment expense		439		445
Professional fees		134		153
Marketing expense		117		96
Printing and office supplies		69		64
Directors and committee fees		88		88
Other real estate owned expense, net		170		98
FDIC deposit insurance expense		49		31
Other		417		330
Total noninterest expense		4,098		3,743
Income Before Income Taxes		1,542		337
Income tax expense		379		99
Net Income	$	1,163	$	238
Earnings per share, basic and diluted	$	2.92	$	0.58
Dividends Declared per Share	$	0.37	$	0.34

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GREAT AMERICAN BANCORP, INC. AND SUBSIDIARY

Consolidated Statements of Income

Three Months Ended June 30, 2023 and 2022

(unaudited, in thousands, except share data)

		2023		2022
Interest and Dividend Income
Loans	$	1,140	$	939
Securities		543		124
Dividends on Federal Home Loan Bank stock		2		2
Deposits with financial institutions and other		378		174
Total interest and dividend income		2,063		1,239
Interest Expense
Deposits		12		16
Other		1		1
Total interest expense		13		17
Net Interest Income		2,050		1,222
Provision (Credit) for Loan Losses		-		-
Net Interest Income After Provision (Credit) for Loan Losses		2,050		1,222
Noninterest Income
Insurance sales commissions		414		388
Customer service fees		121		119
Other service charges and fees		85		90
Net gain on sales of loans		55		177
Loan servicing fees, net of amortization of mortgage servicing rights		16		24
Net gain on sales of other real estate owned		44		29
Other		87		52
Total noninterest income		822		879
Noninterest Expense
Salaries and employee benefits		1,136		1,066
Occupancy expense		162		140
Equipment expense		210		221
Professional fees		62		79
Marketing expense		62		57
Printing and office supplies		36		33
Directors and committee fees		44		44
Other real estate owned expense, net		75		53
FDIC deposit insurance expense		34		16
Other		207		169
Total noninterest expense		2,028		1,878
Income Before Income Taxes		844		223
Income tax expense		212		63
Net Income (loss)	$	632	$	160
Earnings per share, basic and diluted	$	1.59	$	0.39
Dividends Declared per Share	$	0.20	$	0.17

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